On Assignment missed Wall Street expectations during the second quarter as costs associated with a large acquisition lowered its financial results.
The Calabasas personnel agency reported net income of $14.3 million (27 cents a share) for the quarter ending June 30, compared to $20.8 million (36 cents) for the same period a year ago. Revenue gained 11.7 percent to $485 million.
Analysts expected earnings of 56 cents on revenue of $469 million, according to Thomson Financial Network.
During the quarter, the company acquired Creative Circle LLC, a large digital advertising and marketing staffing firm, for $570 million. The purchase resulted in higher general and administrative expenses and interest payments.
“We are pleased with our strategic and operational accomplishments during the quarter. The acquisition of Creative Circle positions us well in the fast-growing digital creative staffing space,” Chief Executive Peter Dameris said in a statement.
Shares closed down 16 cents or a fraction of a percent to $37.50 on the New York Stock Exchange.